Cornwall Council's Cabinet was scheduled to meet on 18 June 2025 to discuss the council's performance and finances, as well as the impact of key government policies and funding reforms. The meeting was also scheduled to include a discussion of the Council Performance Report for the fourth quarter of 2024/25, and the Provisional Outturn Report for 2024/25. Finally, the meeting was scheduled to include a discussion of any urgent business.

Key Government Policy and Funding Reforms

The Cabinet was scheduled to discuss a report on key government policy and funding reforms impacting Cornwall Council. The report highlighted a selection of bills alongside other key Government policy and funding reforms, and their potential implications for Cornwall Council and Cornwall. These 'reforms' are set out under the Government's 'Plan For Change', based around a set of 'strong foundations' and five 'missions'.

The report noted that the scale of the reforms and their impact had already become apparent since July 2024, and that the council had responded forcefully where the potential or actual effect on Cornwall was not favourable. One example given was the withdrawal of the Rural Services Delivery Grant from the Local Government Settlement, which resulted in a £5.1m shortfall in the council's anticipated budget for 2025/26.

The report also highlighted other reforms that were already having an impact, or were projected to do so, starting with the announcement of the Government's Comprehensive Spending Review (CSR) on 11 June. The CSR was expected to determine the budgets for all government departments for the next three years, including the Ministry of Housing, Communities & Local Government (MHCLG). As such, the CSR would ultimately have a major bearing on how much future funding flows into the council and Cornwall.

It was anticipated that the CSR announcement would be accompanied by the publication of the Government's 10-year Industrial Strategy and 10-year Health Plan. Individually, but certainly as a collective, these three key policy and funding reforms have the potential to have a profound impact for years to come. Indeed, taken as whole, the national context presents a high degree of challenge and risk, but also potential opportunities that the council and Cornwall are well placed to grasp and benefit from.

The report stated that the intention was to develop a series of weekly All Member Briefings (AMBs) in order to ensure all 87 members of the council have the opportunity to learn more about the key Government reforms and the actual or potential implications in readiness to respond, starting with CSR.

The report also covered a number of specific policy areas, including:

• Local authority funding: Substantial changes to reform local authority funding are planned to come into effect from the 2026/27 financial year alongside the first multi-year finance settlement for a decade. The report noted that the council had made strong representations to the government for 'fairer funding', including highlighting the problematic definition of 'deprivation' used in the Index of Multiple Deprivation (IMD), the increasing expenditure on children's social care, and the scope of funding reforms.
• Devolution: The Government has promised to deepen devolution settlements for existing combined authorities and widen devolution to more areas, encouraging local authorities to come together and take on new powers . The report noted that Cornwall had historically led the way in terms of devolution to rural areas, and that the council had secured a Level 2 Cornwall Devolution Deal in 2023. The report also noted that the government intends to bring forward a Devolution Bill that provides legislation to underpin the English Devolution White Paper.
• Kickstarting economic growth: Central to this mission is the Government's new 10-year Industrial Strategy that is anticipated to accompany the CSR on 11 June. The report noted that the council had highlighted a number of concerns in its response to the Government's Invest 2035 Green Paper, principally the stated intention to focus investment through Mayoral Combined Authorities on 'city regions', 'highpotential clusters' and 'strategic industrial sites', with no reference to growth investment in 'rural areas'.
• Building an NHS fit for the future: The cornerstone of this mission will be a 10-year Health Plan that will seek to reform the health system, structured around three shifts: from hospital to community, from analogue to digital, and from sickness to prevention . The report noted that the Prime Minister had announced in March that the Government would abolish NHS England, seeking to fully integrate its functions in the Department for Health and Social Care.
• Safer streets: In February, Government announced the extension of Multi-Agency Public Protection Arrangements (MAPPA) to perpetrators of controlling or coercive behaviour.
• Breaking down barriers to opportunity: The Children's Wellbeing and Schools Bill was introduced to Parliament in December 2024, which contains a variety of reforms to early years education and childcare.
• Make Britain a clean energy superpower: Great British Energy is a publicly owned, clean energy company. It will own, manage and operate clean power projects (such as wind farms) across the UK.

The report also covered other relevant policy announcements, including private renters' rights, homelessness, supported housing, warm homes local grant, land use, farming and food security, environmental regulation, water pollution, and the Fishing and Coastal Growth fund.

Appendix 1 - Summary of the Government's Comprehensive Spending Review

A supplementary agenda was issued containing a summary of the Government's Comprehensive Spending Review.

The summary stated that the SR gives the first comprehensive statement of how the Government wants to prioritise public spending, and confirmed that it is a 3-year SR for day-to-day spending, covering the years 2026-27 to 2028-29, but the third year in the series will be revisited in the SR that is planned for 2027. For capital spending the SR covered a four-year period to 2029/30.

In terms of funding for local government, the key features of the SR include the following:

• The SR budget for local government (comprised mainly of grant funding) will increase by £0.8bn between 2025/26 and 2028/29 (1.1% average real terms growth).
• Core Spending Power (CSP), however, is set to increase by nearly £10bn over the same period; £3.8bn 26/27, £2.9 bn 27/28 and £3.2bn 28/29 (2.6% average real terms growth). CSP figures include the assumption that all authorities will increase Council Tax by the maximum amount permitted – the same expectation applies to the Adult Social Care precept and Police precept.
• The Government states that wider reforms will ensure funding is effectively targeted, based on an updated assessment of need, and will consolidate funding to give local authorities greater flexibility to innovate and deliver against local priorities. This includes committing to multi-year settlements.
• The SR provides an increase of over £4bn of funding available for adult social care in 2028/29, compared to 2025/26 (incl. assumed ASC precept). Of significance, this includes an increase to the NHS's minimum contribution to adult social care via the health sector's Better Care Fund.
• Details of the Government's intended approach to SEND reform will be set out in a Schools White Paper in the autumn, however, the SR confirming that £547m in 2026/27 and £213m in 2027/28 are being provided through the Government's Transformation Fund towards reform of the SEND system.

The summary also noted that the UK Shared Prosperity Fund will come to an end in March 2026, and is being replaced by 10-year local growth fund settlements for certain areas and a commitment to invest in up to 350 deprived communities.

Council Performance Report 2024/25 (Q4)

The Cabinet was scheduled to acknowledge and note the fourth Council Performance Report for 2024/25, covering performance, risks and projects for the period (Q4) January, February and March 2025 (and Q3 in respect of the Council owned entities), and the challenges and corrective actions tracking into Q1 of 2025/26.

The report provided an overview of the council's performance during Quarter 4 (1 January to 31 March 2025) and a year-end summary for 2024/25. Further details on the council's financial performance for 2024/25 are set out in the subsequent Provisional Outturn Report on the Cabinet agenda.

The report noted that, despite the challenging financial position facing the whole sector, the council's overall performance continues to compare favourably with other local authorities of similar size and complexity.

In recognition of the outcome of the council elections on 1 May, the Directorate performance summaries extend beyond reporting on progress in delivering on the priorities set by the previous Administration in 2021 and highlight a number of challenges and risks that will carry forward into 2025/26 for the new Cabinet to consider.

The Directorate summaries are complemented by a more extensive range of performance information set out in the interactive dashboard.

The report included summaries of performance in the following directorates:

• Together for Families Directorate
• Sustainable Growth and Development Directorate
• Neighbourhoods Directorate & Care and Wellbeing Directorate
• Customer and Support Services Directorate

The report also included a summary of Quarter 3 2024/25 performance for Council Owned Entities, including:

• Cormac
• Corserv Care
• Cornwall Airport
• Corserv Facilities
• Cornwall Housing
• Celtic Sea Power
• Treveth

Provisional Outturn Report 2024/25

The Cabinet was scheduled to endorse the provisional revenue and capital outturn position for the 2024/25 financial year as detailed in the report, note the movements in reserves, as detailed in paragraph 2.21 and table 3, which have been approved by the Section 151 Officer in line with the Financial Regulatory Framework, and note the Treasury Management Strategy 2024/25 outturn, as detailed in Appendix 1 to the report.

The report provided the provisional financial outturn for 2024/25, including revenue, capital, movement in reserves and the Housing Revenue Account (HRA) outturn. The Treasury Management Outturn report is included in Appendix 1.

The report noted that the council's statutory accounts are currently being prepared to meet the 30 June 2025 deadline, and that these will be subject to external audit and some adjustments may then arise.

The revenue outturn for 2024/25 was an overspend of £3m against a net budget of £770m. The overspend was foreseen during the year and was driven by increased demand for services, both in terms of cost and volume. It was reported on a timely basis to Cabinet and adequate provision was made from the Financial Sustainability Reserve.

During the final quarter of the year, management interventions reduced the level of overspend by c£5m. As at the end of quarter 3, the overspend was forecast to be £8.4m.

The capital programme outturn for 2024/25 was £373.1m, a movement of £1.8m from the quarter 3 forecast of £371.3m.

The report also included details of reserve movements and balances in 2024/25, and the Housing Revenue Account (HRA) outturn.

Treasury Management Outturn Report

The Treasury Strategy 2024/25 Outturn Report (Appendix 1) fulfils this regulatory requirement and also the requirements of the CIPFA (Chartered Institute of Public Finance and Accountancy) Code of Practice on Treasury Management.

The report indicates that the council's Treasury Management has performed well in an uncertain economic market and within the council agreed strategy parameters. The average cost of debt was lower than the comparable Public Works Loan Board (PWLB) borrowing rate, and the interest earned from investments also exceeded benchmark comparison in 2024/25. The Internal Audit report has provided reasonable assurance on the Treasury Management activity.

The report stated that the council aims to achieve the optimum return (yield) on its investments commensurate with proper levels of security and liquidity, aligned with the council's risk appetite. As at 31 March 2025, the council's investment portfolio stood at £354m (£275.5m external investments, £78.5m cashflow loans to council companies).

The report also noted that, due to the underlying need to borrow for capital purposes (the Capital Financing Requirement - CFR), the council's gross borrowing was expected to increase from £1,265.0m as at 31 March 2024 to £1,374.2m as at 31 March 2025. As at 31 March 2025, the external borrowing was £1,374.7m, which was inline with expectations.

Exclusion of the Press and Public

The Cabinet was asked to consider a resolution that the press and public be excluded from the meeting for the business specified in the following item(s) on the grounds that there is likely to be a disclosure to the public of exempt information of the following descriptions:

1. Information relating to the financial or business affairs of any particular person (including the authority holding that information)